Emerging economies ‘making significant progress in green lending’

Emerging markets have become a “major force” in driving climate change with reforms to expand sustainable lending. That’s according to the Sustainable Banking Network, an International Finance Corporation (IFC)-supported organisation […]

By Priyanka Shrestha

Emerging markets have become a “major force” in driving climate change with reforms to expand sustainable lending.

That’s according to the Sustainable Banking Network, an International Finance Corporation (IFC)-supported organisation of banking regulators and associations, which suggests 34 countries have initiated banking reforms.

They account for $42.6 trillion (£31tn) in bank assets – more than 85% of the total in emerging markets.

The report adds eight countries – Bangladesh, Brazil, China, Colombia, Indonesia, Mongolia, Nigeria and Vietnam – have reached an advanced stage, requiring banks to assess and report on environmental and social risks in their lending operations and provide market incentives for banks to lend to green projects.